Many sellers on Ebay and Amazon already use Alibaba for sourcing. It's a small step to using the same site/look and feel for selling.

As consumers, you may not heard of /much about Alibaba, but online merchants know it well. Remember, Alibaba is bigger than eBay and Amazon combined in product sales terms. It also happens to be busy hiring US talent. 11main isn't the problem. fear of losing 25% of sales isn't a problem (not right away). The problem is Amazon's 120 P/E multiple that is supported based on investor's belief that revenue will continue growing rapidly.

All it will take is a slowing of revenue guidance and margin compression to nose-dive the stock price. We've seen this movie too many times to not remember how it ends.

"People have been saying this for the past 20 years, and Amazon has gone from $1 to $350." - while somewhat true, I haven't. Also, I like Amazon, I use it all the time, but I separate the store from the stock.

"People have been saying this for the past 20 years, and Amazon has gone from $1 to $350." - I suggest you read The Black Swan. The ground is shifting.

Finally, Shorting AMZN on its way up the first time above $300 was one of my best calls in my option newsletter http://bit.ly/1kWIZ1K

I think you're missing the whole point. It's not about Amazon losing much in terms of sales. In fact, from the consumer point of view, little may change.

However, the stock is a buzz lightyear, priced to perfection and beyond. Amazon's growth only needs to stop for the stock to fall in half. Add margin compression and the red ink may flow like a river. There is no room for error in execution, growth, or earnings, zero....

Meanwhile, investors are focusing on drones that may go into service in 5 to 7 years from now (and even then in limited areas). Amazon is the classic focus on reward and dismiss the risk type of stock here. A fire-breathing dragon is at the door knocking and if Amazon was priced at 25 times earnings it wouldn't be a big deal, but it isn't and so it is a big deal.

"Amazon is more than just a retailer" - I agree, but that's part of Amazon's problem. It makes a lot of money through its sales portal, but loses money in other areas.

There are many metrics that are valuable to help determine an appropriate price, but everyone understands P/E and at the end of the day, P/E rules king because no company can maintain a multiple over 100 forever.

I can see Amazon's multiple falling below 30 FAST if they begin to stack up losses and fail to grow the top and bottom lines because another player enters the space. Anyone not understanding the potential peril owning a triple digit P/E in the face of a much larger competitor entering the space deserves what they get.

AMD Earnings Preview: Can The Chipmaker Repeat Its Last Quarter's Profit [View article]

Thanks for reading and sharing your thoughts. Sure, of course. My opinion changes as the facts change. I don't have an ax to grind, and in fact, I did a lot of business with the company in days gone by - and know people that work on its chips.

We both agree that Citi has upside potential, but it's not clear how much more than WFC. I have owned C in the past. Bought around $3.80 I believe, or $38 post r-split. Sold when the government required the bank to let go its best traders because they were paid too much.